HelloHer estate may not have to pay Inheritance Tax on assets or money she gave away as gifts while she is alive.She must live for 7 years after giving the gift. Any gifts made less than 7 years before death count towards the Inheritance Tax threshold (&pound;325,000). They count towards the threshold before the rest of her estate.You are correct the estate doesn’t pay Inheritance Tax on up to &pound;3,000 worth of gifts given away by the deceased in each tax year (6 April to 5 April). This is called the &lsquo;annual exemption’.Leftover annual exemption can be carried over from one tax year to the next, but the maximum exemption is &pound;6,000.She would not have a tax situation as long as she lives for 7 years past the gift to her parents.After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.I know rating takes an additional step and I truly appreciate it when you take the extra time!

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